Fnac
Encyclopedia
Fnac is an international entertainment
retail chain offering cultural
and electronic
products, founded by André Essel
and Max Théret
in 1954. It is the largest retailer of its kind in France
. Its head office is in Le Flavia in Ivry-sur-Seine
near Paris
.
and Max Théret
were both part of France's Young Socialists
movement, a left-wing militant group. Fnac was founded to provide affordable products to the worker, who had increasing purchasing power. As a result, it remained true to its socialist beliefs. Today, the company prides itself on offering a diverse range of products, impartial advice from their employees, ensuring their products are up to standard by being checked in an independent test centre and blacklist
ing those that do not meet a minimum set of requirements.
Fnac also holds multiple "forums" throughout the year, which are opportunities for customers to have open dialogue with people such as Pedro Almodóvar
, George Lucas
, and David Cronenberg
, discussions with authors including Paul Auster
, Pierre Bourdieu
, and Françoise Giroud
in addition to exclusive concerts. Musicians playing in these concerts have included Yann Tiersen
, Ben Harper
, Keane and David Bowie
.
Each year a "Book Fair" is held with discussions among writers, opinion leaders, politicians and the public. Topics related to literature, culture, society and the sciences are discussed. Since 2001 the company has also annually presented an award, Le prix du roman Fnac, whose winners are chosen by an independent panel of booksellers and members. Dominique Mainard
, Pierre Charras and Pierre Péju are among those who have won. These events are shown on the company website fnaclive.com (in French).
Fnac also participates in campaigns against exclusion, racism
and censorship
. In 2003, the firm began a five-year plan to combat illiteracy among schoolchildren.
The company is also committed to defending the diversity of music. In February 2002 Fnac published with UPFI (Union des Producteurs Phonographiques Français Indépendants) "Manifeste pour la diversité musicale", as a prelude to a policy of favorable treatment for independent labels and their artists. Fnac publishes "Indétendances," a compilation of ten artists bimonthly published by independent labels, which it set aside part of its listening kiosks in stores to promote their work.
and Max Théret
. The objective of the company for the two founders would be to serve both the commercial and consumer industries, offering discounted equipment through a magazine titled Contact, and by cutting the standard retail mark-up (as high as 50 percent elsewhere) on its products down to as low as 15 percent, thereby making products more affordable and increasing the purchasing power of the worker. The first shop was opened in a sublet, a second-floor apartment on the rue de Sebastopol in Paris on July 31, 1954. The company differs from its competition with a "unique brand positioning based on the exaltation of pleasure to discover the diversity of cultures and technologies".
This unique brand positioning of the company was continued with the training of all sales assistants in their product categories, with purchases being guaranteed for one year. Furthermore, all products were tested in the company's independent test centre before sale. The test centre would check for technical quality, ease of use, price and the "price/quality ratio," and all results were published in the companies free members' magazine Contact, which today can also be found advertised in store. In addition, staff were expected to do more than just sell their products but offer advice to customers and beginning in 1957 blacklist any unsatisfactory products, such as those with technical difficulties. By the end of its first full year of operation the company saw revenues of 50 million old francs. In 1957, it was selling televisions, hi-fis, recording equipment, radios and records
.
on the avenue de Wagram, near the Arc de Triomphe
in 1969. By this time, the company had 580 employees.
The 1970s saw further expansion for Fnac, as the company began opening shops in the French provinces outside Paris and a third in the city itself that sold books, the newest addition to the product range. The founders of the company sold 40 percent of the company to insurance firm Union des Assurances (AXA)
to raise money to fund growth. In turn, the insurance firm sold 16 percent of its shares to investment bank Banque de Paris et des Pays Bas (later known as Banque Paribas), in 1972. During this period, the company's sales were worth an estimated $70 million, generating net profits of $2.2 million, translating to 4 percent of all record sales in the French market, eight percent of sound equipment sales and ten percent of photo equipment sales.
In 1974, the company began selling books at 80% of the RRP, which sparked protests from publishers, writers and independent booksellers alike, who could not benefit from the economies of scale
. This prompted government action in 1982 with the so-called 'anti-Fnac' law, that was signed to limit discounts on books to a maximum of five percent. In 1975, videos were added to the product range.
Towards the late 1970s, Fnac continued to expand by building to 12 stores in Paris and other cities through France. In 1977, the remaining shares of the company's founders were sold to the Société Génerale des Cooperatives de Consommation (SGCC, the financial arm of the Coop retailing group) to raise more capital.
FNAC became a Public limited company
on the Paris stock exchange in 1980 when 25 percent of the company was offered to the public. SGCC, however, maintained a 51 percent control of the company, which now employed more than 2,700 and was declaring turnover of FFr 2.2 billion.
In 1981, FNAC opened a store in Brussels
, Belgium
under the management of Sodal, a joint-venture between FNAC (40 percent) and the GIB Group (60 percent). The GIB Group later added three more stores in the mid-1980s, in Ghent
, Antwerp, and Liège.
In 1983, André Essel
retired and was replaced by the then SGCC president Roger Kerinec.
In 1985, SGCC sold its shares to the insurance group Garantie Mutuelle des Fonctionnaires (GMF) due to growing competition from the French hypermarket
and discount chains such as Carrefour
and E.Leclerc
. Michel Barouin, GMF's president and director general, took these positions at FNAC as well. In 1987, Barouin disappeared in an airplane accident and Jean-Louis Petriat was named to lead both GMF and FNAC.
In 1988, the first Virgin Megastore
opened in Paris
. Petriat announced a FFr 1.5 billion plan to add 15 new stores to the 31-store chain and double the company's gross revenues, in order to compete with the new entrant to the French market. Petriat also had plans to expand into the German
market. By this point, sales of compact discs and other recordings had joined books as the company's most important sources of revenue. Fnac now has 20% of the recordings market, making it the largest retailer in the country.
During the late 1980s, Petriat added a music distribution division following the purchase of Wotre Music Distribution (WMD). In January 1991, Fnac Music was formed. Petriat hoped to build the first French multinational record company, with plans to capture as much as five percent of the market.
The 1990s brought fierce competition after the arrival of HMV and Virgin Megastores in 1988 as well as the strength of hypermarkets. The company responded by cutting its prices and stepping up the competition, which forced HMV to leave France after only six months. Virgin Megastores remained in the French market, and decided to open two more stores in addition to its original store in Paris
. In response to the megastore, as seen to the right, Fnac spent around $23 million to build its own megastore, at 32,000 square metres, more than twice the size of the Virgin megastore, which became known as "the Cathedral".
In 1991, the first Fnac store was opened in Berlin
continuing with Petriat's plans, this was close to the original Virgin megastore, which opened there only a few months earlier.
In 1992, the fate of FNAC Librairie Internationale, featuring books in languages other than French, was sealed and closed after only a year of trading. This store was converted to a computer products-only concept, called FNAC Micro, which proved more successful.
In 1993, the first Fnac store was opened in Madrid
, Spain
. However, the FNAC Music subsidiary, while posting some successes, failed to live up to the company's expectations and was unable to gain more than a two percent market share and was eventually sold off the distribution arm WMD, which shut down FNAC Music in 1994.
Despite some failures, the company revealed growing revenues though shrinking profits in the early 1990s, also attributed to the recession
in the French economy. In 1991 the company recorded gross sales of FFr 7.4 billion, while profits fell approximately FFr 55 million, to FFr 159.5 million. The following year, despite a rise in revenues to FFr 8.9 billion, the company's net income dropped to FFr 31.9 million.
The falling profits for Fnac was a similar situation to the parent company, GMF whose share count totalled more than 80 percent. To raise more capital, GMF agreed to sell its shares of FNAC in July 1993 to Altus Finances, a subsidiary of government-owned Crédit Lyonnais
, and Phenix, a property group owned by French waterworks company Générale des Eaux, for FFr 2.4 billion. The deal came under scrutiny by the Commission des opérations de bourse (COB) though was allowed to proceed in September 1993. Crédit Lyonnais became the majority shareholder, with 64 percent of shares, while Générale des Eaux held 34 percent. The remaining two percent of shares continued to be publicly owned.
In 1994, Crédit Lyonnais announced it was going to sell its 64 percent share of the company as part of a FFr 20 billion asset-reduction plan. In July 1994, the Altus Finances subsidiary agreed to sell the majority stake in FNAC for FFr 1.9 billion to François Pinault, the largest shareholder in and architect of Pinault-Printemps-Redoute.
Since 1994, PPR
or Pinault-Printemps-Redoute has been the majority shareholder of Fnac and the company was led by François-Henri Pinault, son of the parent company's head François Pinault. The new ownership saw the closure of the WMD and FNAC Music subsidiaries and instead concentrated on further expansion of its retail chain. In 1995, the company added its 45th French store, while a second Spanish store, in Barcelona
was opened in 1996. In 1995, the Fnac store was closed in Berlin
and the company instead continued its international expansion in Belgium
, which were now becoming profitable.
In October 1996, the new parent company assumed full control of the Belgian affiliate and announced plans to double the number of stores in Belgium that began with the opening of a fifth store in 1997. In March 1996, François-Henri, was named chairman of Fnac and opened two stores in France. At this point, Fnac had revenues passing FFr 10 billion and net earnings of FFr 200 million.
In 1999, the first Fnac store outside Europe was opened in São Paulo
(Brazil
).
, Belgium
, Brazil
, Greece
, Italy
, Portugal
, Spain
, Switzerland
, Morocco
and Taiwan
(where it is now known under the name Fayaque).
(in order of opening):
Pinheiros (São Paulo
), Barra Shopping (Rio de Janeiro
), Shopping Dom Pedro (Campinas
), Paulista (São Paulo
), Shopping Barigui (Curitiba
), Parkshopping (Brasília
), Morumbi Shopping (São Paulo
), Barra Shopping Sul (Porto Alegre
), Ribeirão Shopping (Ribeirão Preto
) and BH Shopping (Belo Horizonte
). The headquarters is located in São Paulo
.
(in order of opening):
Plaza Callao (Madrid
), L'illa (Barcelona
), San Agustín (Valencia), Triangle (Barcelona), Coso (Zaragoza
), Bulevar (Alicante
), Parque Principado (Oviedo
), Diagonal Mar (Barcelona), La Cañada (Marbella
, Málaga), Plaza (Marbella
, Málaga
), Plaza Norte (San Sebastián de los Reyes
, Madrid
), ParqueSur (Leganés
, Madrid), Donostia (San Sebastián
), Nueva Condomina (Murcia
), Bilbao (Bilbao
), Ave. de La Constitución (Seville
), Praza de Lugo (Corunna
), Málaga Plaza (Málaga
), Plaza Imperial (Zaragoza
), La Gavia (Madrid
), and Paseo de la Castellana (Madrid
). The headquarters is located in Pozuelo de Alarcón
, Madrid
.
, two in Geneva
, the third in Lausanne
and the fourth in Fribourg
(in order of opening): Colombo (Lisbon
), NorteShopping (Oporto), Chiado (Lisbon
), CascaiShopping (Cascais
), Santa Catarina (Porto
), Almada (Almada
), GaiaShopping (Gaia
), AlgarveShopping (Albufeira
), Forum Coimbra (Coimbra
), MadeiraShopping (Madeira
), Braga Parque (Braga
), Alegro (Alfragide
), Palacio do Gelo (Viseu
), MarShopping-IKEA (Matosinhos
), Vasco da Gama (Lisbon
), GuimarãeShopping (Guimarães
) and LeiriaShopping (Leiria
). Also a website (fnac.pt), which was the most popular commercial website in Portugal in 2007.
. As of 2008, there are two versions of the card, a one year membership card or alternatively a three year membership card. The membership card offers a 5% discount on hardware, books and various monthly offers.
(where it is commonly referred to as Fenaque), Greece
, Italy
, Portugal
, Spain
, Switzerland
, and Taiwan
(where it is now known under the name Fayaque).
, Books, CDs
, Computer
software and hardware
, DVD
s, Televisions and Video games. Some stores also operate services of photography and ticket sales. The company also offers a wide selection of higher-end consumer products positioning themselves above discount retailers.
. The company objective for 2009 is to strengthen their position on each of these countries as well as further international expansion. In November 2007, Denis Olivennes, chief executive officer of Fnac, said, "We are moving from a strategy based on our position as a retailer of cultural and technological products to undertake a new, more global initiative, in which the product is only one aspect among others."
The parent company, PPR highlighted Fnac's good performance in France
in its quarterly business performance, citing acceleration in growth and market share gains supported by strong trading in technical goods.
In November 2007, Eric Angiboust, global development director at Fnac, said in response to a question regarding Fnac entering the UK market, "It’s a matter of timing. For sure we want to be in London
"
On 30 December 2008, the British
newspaper, the Independent
, speculated that Fnac could be tempted into the UK market by bidding for the 125 stores of the Zavvi Entertainment Group, also an entertainment retailer, which went into administration on 24 December 2008 due to problems with their supplier EUK.
, France
.
Previously it was located in Clichy-la-Garenne
, Hauts-de-Seine
. Around 2006 there were rumors stating that Fnac would move to Wissous
. In 2008 the head office moved to Ivry-sur-Seine. The subsidiary Fnac.com moved from Aubervilliers
to Ivry during the same year.
, begins with an armed robbery at a Fnac store in Barcelona
.
Entertainment
Entertainment consists of any activity which provides a diversion or permits people to amuse themselves in their leisure time. Entertainment is generally passive, such as watching opera or a movie. Active forms of amusement, such as sports, are more often considered to be recreation...
retail chain offering cultural
Culture
Culture is a term that has many different inter-related meanings. For example, in 1952, Alfred Kroeber and Clyde Kluckhohn compiled a list of 164 definitions of "culture" in Culture: A Critical Review of Concepts and Definitions...
and electronic
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
products, founded by André Essel
André Essel
André Essel was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside Max Théret...
and Max Théret
Max Théret
Max Théret was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside André Essel...
in 1954. It is the largest retailer of its kind in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. Its head office is in Le Flavia in Ivry-sur-Seine
Ivry-sur-Seine
Ivry-sur-Seine is a commune in the Val-de-Marne department in the southeastern suburbs of Paris, France. It is located from the center of Paris....
near Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
.
Core values
The company's founders, André EsselAndré Essel
André Essel was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside Max Théret...
and Max Théret
Max Théret
Max Théret was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside André Essel...
were both part of France's Young Socialists
Young Socialists
Young Socialists has been the name of more than one group:* Young Socialists * Young Socialists * Young Socialists * Young Socialists * Young Socialists * Young Socialists...
movement, a left-wing militant group. Fnac was founded to provide affordable products to the worker, who had increasing purchasing power. As a result, it remained true to its socialist beliefs. Today, the company prides itself on offering a diverse range of products, impartial advice from their employees, ensuring their products are up to standard by being checked in an independent test centre and blacklist
Blacklist
A blacklist is a list or register of entities who, for one reason or another, are being denied a particular privilege, service, mobility, access or recognition. As a verb, to blacklist can mean to deny someone work in a particular field, or to ostracize a person from a certain social circle...
ing those that do not meet a minimum set of requirements.
Fnac also holds multiple "forums" throughout the year, which are opportunities for customers to have open dialogue with people such as Pedro Almodóvar
Pedro Almodóvar
Pedro Almodóvar Caballero is a Spanish film director, screenwriter and producer.Almodóvar is arguably the most successful and internationally known Spanish filmmaker of his generation. His films, marked by complex narratives, employ the codes of melodrama and use elements of pop culture, popular...
, George Lucas
George Lucas
George Walton Lucas, Jr. is an American film producer, screenwriter, and director, and entrepreneur. He is the founder, chairman and chief executive of Lucasfilm. He is best known as the creator of the space opera franchise Star Wars and the archaeologist-adventurer character Indiana Jones...
, and David Cronenberg
David Cronenberg
David Paul Cronenberg, OC, FRSC is a Canadian filmmaker, screenwriter and actor. He is one of the principal originators of what is commonly known as the body horror or venereal horror genre. This style of filmmaking explores people's fears of bodily transformation and infection. In his films, the...
, discussions with authors including Paul Auster
Paul Auster
Paul Benjamin Auster is an American author known for works blending absurdism, existentialism, crime fiction and the search for identity and personal meaning in works such as The New York Trilogy , Moon Palace , The Music of Chance , The Book of Illusions and The Brooklyn Follies...
, Pierre Bourdieu
Pierre Bourdieu
Pierre Bourdieu was a French sociologist, anthropologist, and philosopher.Starting from the role of economic capital for social positioning, Bourdieu pioneered investigative frameworks and terminologies such as cultural, social, and symbolic capital, and the concepts of habitus, field or location,...
, and Françoise Giroud
Françoise Giroud
Françoise Giroud, born France Gourdji was a French journalist, screenwriter, writer and politician.-Biography:...
in addition to exclusive concerts. Musicians playing in these concerts have included Yann Tiersen
Yann Tiersen
Yann Tiersen is a musician from France. His musical career is split between studio albums, collaborations and film soundtracks with a distinctive sound that is always involved...
, Ben Harper
Ben Harper
Benjamin Chase "Ben" Harper is an American singer-songwriter and musician. Harper plays an eclectic mix of blues, folk, soul, reggae and rock music and is known for his guitar-playing skills, vocals, live performances and activism. Harper's fan base spans several continents...
, Keane and David Bowie
David Bowie
David Bowie is an English musician, actor, record producer and arranger. A major figure for over four decades in the world of popular music, Bowie is widely regarded as an innovator, particularly for his work in the 1970s...
.
Each year a "Book Fair" is held with discussions among writers, opinion leaders, politicians and the public. Topics related to literature, culture, society and the sciences are discussed. Since 2001 the company has also annually presented an award, Le prix du roman Fnac, whose winners are chosen by an independent panel of booksellers and members. Dominique Mainard
Dominique Mainard
Dominique Mainard is a French translator of English novels, short story writer and novelist. She was born in Paris, France in 1967 and grew up in the region of Lyon, and spent five years in the United States. She won the 2009 Prix des Libraires for her novel Pour vous...
, Pierre Charras and Pierre Péju are among those who have won. These events are shown on the company website fnaclive.com (in French).
Fnac also participates in campaigns against exclusion, racism
Racism
Racism is the belief that inherent different traits in human racial groups justify discrimination. In the modern English language, the term "racism" is used predominantly as a pejorative epithet. It is applied especially to the practice or advocacy of racial discrimination of a pernicious nature...
and censorship
Censorship
thumb|[[Book burning]] following the [[1973 Chilean coup d'état|1973 coup]] that installed the [[Military government of Chile |Pinochet regime]] in Chile...
. In 2003, the firm began a five-year plan to combat illiteracy among schoolchildren.
The company is also committed to defending the diversity of music. In February 2002 Fnac published with UPFI (Union des Producteurs Phonographiques Français Indépendants) "Manifeste pour la diversité musicale", as a prelude to a policy of favorable treatment for independent labels and their artists. Fnac publishes "Indétendances," a compilation of ten artists bimonthly published by independent labels, which it set aside part of its listening kiosks in stores to promote their work.
History
Fnac (originally Fédération Nationale d’Achats des Cadres, or National Federation of Picture Shopping) was founded in 1954 as a members-only discount buyers' club by André EsselAndré Essel
André Essel was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside Max Théret...
and Max Théret
Max Théret
Max Théret was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside André Essel...
. The objective of the company for the two founders would be to serve both the commercial and consumer industries, offering discounted equipment through a magazine titled Contact, and by cutting the standard retail mark-up (as high as 50 percent elsewhere) on its products down to as low as 15 percent, thereby making products more affordable and increasing the purchasing power of the worker. The first shop was opened in a sublet, a second-floor apartment on the rue de Sebastopol in Paris on July 31, 1954. The company differs from its competition with a "unique brand positioning based on the exaltation of pleasure to discover the diversity of cultures and technologies".
This unique brand positioning of the company was continued with the training of all sales assistants in their product categories, with purchases being guaranteed for one year. Furthermore, all products were tested in the company's independent test centre before sale. The test centre would check for technical quality, ease of use, price and the "price/quality ratio," and all results were published in the companies free members' magazine Contact, which today can also be found advertised in store. In addition, staff were expected to do more than just sell their products but offer advice to customers and beginning in 1957 blacklist any unsatisfactory products, such as those with technical difficulties. By the end of its first full year of operation the company saw revenues of 50 million old francs. In 1957, it was selling televisions, hi-fis, recording equipment, radios and records
Gramophone record
A gramophone record, commonly known as a phonograph record , vinyl record , or colloquially, a record, is an analog sound storage medium consisting of a flat disc with an inscribed, modulated spiral groove...
.
1960s and 1970s
In 1966, the Fnac store was opened to non-members and began to expand, opening its second store, also in ParisParis
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
on the avenue de Wagram, near the Arc de Triomphe
Arc de Triomphe
-The design:The astylar design is by Jean Chalgrin , in the Neoclassical version of ancient Roman architecture . Major academic sculptors of France are represented in the sculpture of the Arc de Triomphe: Jean-Pierre Cortot; François Rude; Antoine Étex; James Pradier and Philippe Joseph Henri Lemaire...
in 1969. By this time, the company had 580 employees.
The 1970s saw further expansion for Fnac, as the company began opening shops in the French provinces outside Paris and a third in the city itself that sold books, the newest addition to the product range. The founders of the company sold 40 percent of the company to insurance firm Union des Assurances (AXA)
AXA
AXA S.A. is a French global insurance group headquartered in the 8th arrondissement of Paris. AXA is a conglomerate of independently run businesses, operated according to the laws and regulations of many different countries. The AXA group of companies engage in life, health and other forms of...
to raise money to fund growth. In turn, the insurance firm sold 16 percent of its shares to investment bank Banque de Paris et des Pays Bas (later known as Banque Paribas), in 1972. During this period, the company's sales were worth an estimated $70 million, generating net profits of $2.2 million, translating to 4 percent of all record sales in the French market, eight percent of sound equipment sales and ten percent of photo equipment sales.
In 1974, the company began selling books at 80% of the RRP, which sparked protests from publishers, writers and independent booksellers alike, who could not benefit from the economies of scale
Economies of scale
Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...
. This prompted government action in 1982 with the so-called 'anti-Fnac' law, that was signed to limit discounts on books to a maximum of five percent. In 1975, videos were added to the product range.
Towards the late 1970s, Fnac continued to expand by building to 12 stores in Paris and other cities through France. In 1977, the remaining shares of the company's founders were sold to the Société Génerale des Cooperatives de Consommation (SGCC, the financial arm of the Coop retailing group) to raise more capital.
1980s and 1990s
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
on the Paris stock exchange in 1980 when 25 percent of the company was offered to the public. SGCC, however, maintained a 51 percent control of the company, which now employed more than 2,700 and was declaring turnover of FFr 2.2 billion.
In 1981, FNAC opened a store in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
under the management of Sodal, a joint-venture between FNAC (40 percent) and the GIB Group (60 percent). The GIB Group later added three more stores in the mid-1980s, in Ghent
Ghent
Ghent is a city and a municipality located in the Flemish region of Belgium. It is the capital and biggest city of the East Flanders province. The city started as a settlement at the confluence of the Rivers Scheldt and Lys and in the Middle Ages became one of the largest and richest cities of...
, Antwerp, and Liège.
In 1983, André Essel
André Essel
André Essel was the co-founder of Fnac, originally Fédération nationale d’achats des cadres, or National Purchasing Federation of Managers, alongside Max Théret...
retired and was replaced by the then SGCC president Roger Kerinec.
In 1985, SGCC sold its shares to the insurance group Garantie Mutuelle des Fonctionnaires (GMF) due to growing competition from the French hypermarket
Hypermarket
In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...
and discount chains such as Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
and E.Leclerc
E.Leclerc
E.Leclerc is a French hypermarket chain, headquartered in Ivry-sur-Seine. The chain enables semi-independent stores to operate under the Leclerc brand.E.Leclerc was established on 1st January 1948....
. Michel Barouin, GMF's president and director general, took these positions at FNAC as well. In 1987, Barouin disappeared in an airplane accident and Jean-Louis Petriat was named to lead both GMF and FNAC.
In 1988, the first Virgin Megastore
Virgin Megastore
Virgin Megastores is an international chain of record shops, founded by Sir Richard Branson on London's Oxford Street in early 1971. Virgin Megastores are best described today as entertainment retailers....
opened in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. Petriat announced a FFr 1.5 billion plan to add 15 new stores to the 31-store chain and double the company's gross revenues, in order to compete with the new entrant to the French market. Petriat also had plans to expand into the German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
market. By this point, sales of compact discs and other recordings had joined books as the company's most important sources of revenue. Fnac now has 20% of the recordings market, making it the largest retailer in the country.
During the late 1980s, Petriat added a music distribution division following the purchase of Wotre Music Distribution (WMD). In January 1991, Fnac Music was formed. Petriat hoped to build the first French multinational record company, with plans to capture as much as five percent of the market.
The 1990s brought fierce competition after the arrival of HMV and Virgin Megastores in 1988 as well as the strength of hypermarkets. The company responded by cutting its prices and stepping up the competition, which forced HMV to leave France after only six months. Virgin Megastores remained in the French market, and decided to open two more stores in addition to its original store in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. In response to the megastore, as seen to the right, Fnac spent around $23 million to build its own megastore, at 32,000 square metres, more than twice the size of the Virgin megastore, which became known as "the Cathedral".
In 1991, the first Fnac store was opened in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
continuing with Petriat's plans, this was close to the original Virgin megastore, which opened there only a few months earlier.
In 1992, the fate of FNAC Librairie Internationale, featuring books in languages other than French, was sealed and closed after only a year of trading. This store was converted to a computer products-only concept, called FNAC Micro, which proved more successful.
In 1993, the first Fnac store was opened in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
. However, the FNAC Music subsidiary, while posting some successes, failed to live up to the company's expectations and was unable to gain more than a two percent market share and was eventually sold off the distribution arm WMD, which shut down FNAC Music in 1994.
Despite some failures, the company revealed growing revenues though shrinking profits in the early 1990s, also attributed to the recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
in the French economy. In 1991 the company recorded gross sales of FFr 7.4 billion, while profits fell approximately FFr 55 million, to FFr 159.5 million. The following year, despite a rise in revenues to FFr 8.9 billion, the company's net income dropped to FFr 31.9 million.
The falling profits for Fnac was a similar situation to the parent company, GMF whose share count totalled more than 80 percent. To raise more capital, GMF agreed to sell its shares of FNAC in July 1993 to Altus Finances, a subsidiary of government-owned Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
, and Phenix, a property group owned by French waterworks company Générale des Eaux, for FFr 2.4 billion. The deal came under scrutiny by the Commission des opérations de bourse (COB) though was allowed to proceed in September 1993. Crédit Lyonnais became the majority shareholder, with 64 percent of shares, while Générale des Eaux held 34 percent. The remaining two percent of shares continued to be publicly owned.
In 1994, Crédit Lyonnais announced it was going to sell its 64 percent share of the company as part of a FFr 20 billion asset-reduction plan. In July 1994, the Altus Finances subsidiary agreed to sell the majority stake in FNAC for FFr 1.9 billion to François Pinault, the largest shareholder in and architect of Pinault-Printemps-Redoute.
Since 1994, PPR
PPR (company)
PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
or Pinault-Printemps-Redoute has been the majority shareholder of Fnac and the company was led by François-Henri Pinault, son of the parent company's head François Pinault. The new ownership saw the closure of the WMD and FNAC Music subsidiaries and instead concentrated on further expansion of its retail chain. In 1995, the company added its 45th French store, while a second Spanish store, in Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
was opened in 1996. In 1995, the Fnac store was closed in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
and the company instead continued its international expansion in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, which were now becoming profitable.
In October 1996, the new parent company assumed full control of the Belgian affiliate and announced plans to double the number of stores in Belgium that began with the opening of a fifth store in 1997. In March 1996, François-Henri, was named chairman of Fnac and opened two stores in France. At this point, Fnac had revenues passing FFr 10 billion and net earnings of FFr 200 million.
In 1999, the first Fnac store outside Europe was opened in São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
(Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
).
Operations
As of 2009, the company has stores in FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, Morocco
Morocco
Morocco , officially the Kingdom of Morocco , is a country located in North Africa. It has a population of more than 32 million and an area of 710,850 km², and also primarily administers the disputed region of the Western Sahara...
and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
(where it is now known under the name Fayaque).
Brazil
There are 10 FNAC stores in BrazilBrazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
(in order of opening):
Pinheiros (São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
), Barra Shopping (Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
), Shopping Dom Pedro (Campinas
Campinas
Campinas is a city and municipality located in the coastal interior of the state of São Paulo, Brazil. is the administrative center of the meso-region of the same name, with 3,783,597 inhabitants as of the 2010 Census, consisting of 49 cities....
), Paulista (São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
), Shopping Barigui (Curitiba
Curitiba
Curitiba is the capital of the Brazilian state of Paraná. It is the largest city with the biggest economy of both Paraná and southern Brazil. The population of Curitiba numbers approximately 1.75 million people and the latest GDP figures for the city surpass US$61 billion according to...
), Parkshopping (Brasília
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...
), Morumbi Shopping (São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
), Barra Shopping Sul (Porto Alegre
Porto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
), Ribeirão Shopping (Ribeirão Preto
Ribeirão Preto
Ribeirão Preto is a municipality and city in the Northeastern region of the state of São Paulo in Brazil. It is nicknamed Brazilian California, because of a combination of an economy based on agrobusiness plus high technology, wealth and sunny weather all year long. With 605,114 inhabitants,...
) and BH Shopping (Belo Horizonte
Belo Horizonte
Belo Horizonte is the capital of and largest city in the state of Minas Gerais, located in the southeastern region of Brazil. It is the third largest metropolitan area in the country...
). The headquarters is located in São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
.
Spain
There are 20 FNAC stores in SpainSpain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
(in order of opening):
Plaza Callao (Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
), L'illa (Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
), San Agustín (Valencia), Triangle (Barcelona), Coso (Zaragoza
Zaragoza
Zaragoza , also called Saragossa in English, is the capital city of the Zaragoza Province and of the autonomous community of Aragon, Spain...
), Bulevar (Alicante
Alicante
Alicante or Alacant is a city in Spain, the capital of the province of Alicante and of the comarca of Alacantí, in the south of the Valencian Community. It is also a historic Mediterranean port. The population of the city of Alicante proper was 334,418, estimated , ranking as the second-largest...
), Parque Principado (Oviedo
Oviedo
Oviedo is the capital city of the Principality of Asturias in northern Spain. It is also the name of the municipality that contains the city....
), Diagonal Mar (Barcelona), La Cañada (Marbella
Marbella
Marbella is a town in Andalusia, Spain. It is situated on the Mediterranean Sea, in the province of Málaga, beneath the La Concha mountain. In 2000 the city had 98,823 inhabitants, in 2004, 116,234, in 2010 approximately 135,000....
, Málaga), Plaza (Marbella
Marbella
Marbella is a town in Andalusia, Spain. It is situated on the Mediterranean Sea, in the province of Málaga, beneath the La Concha mountain. In 2000 the city had 98,823 inhabitants, in 2004, 116,234, in 2010 approximately 135,000....
, Málaga
Málaga (province)
The Province of Málaga is located on the southern coast of Spain, in the Autonomous Community of Andalusia. It is bordered by the Mediterranean Sea to the South, and by the provinces of Cádiz, Sevilla, Córdoba and Granada.Its area is 7,308 km²...
), Plaza Norte (San Sebastián de los Reyes
San Sebastián de los Reyes
San Sebastián de los Reyes is a municipality in the Community of Madrid in Spain. Founded in 1492, it is located 20 km north of Madrid. The city is twinned with Baunatal in Germany. It is geographically joined with neighboring Alcobendas and they share a common RENFE commuter line to Madrid Atocha...
, Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
), ParqueSur (Leganés
Leganés
Leganés is a city in central Spain. Part of the greater Madrid conurbation - mainly a satellite-city with a population of 186,066 it is located about 11 km southwest of the city centre....
, Madrid), Donostia (San Sebastián
San Sebastián
Donostia-San Sebastián is a city and municipality located in the north of Spain, in the coast of the Bay of Biscay and 20 km away from the French border. The city is the capital of Gipuzkoa, in the autonomous community of the Basque Country. The municipality’s population is 186,122 , and its...
), Nueva Condomina (Murcia
Murcia
-History:It is widely believed that Murcia's name is derived from the Latin words of Myrtea or Murtea, meaning land of Myrtle , although it may also be a derivation of the word Murtia, which would mean Murtius Village...
), Bilbao (Bilbao
Bilbao
Bilbao ) is a Spanish municipality, capital of the province of Biscay, in the autonomous community of the Basque Country. With a population of 353,187 , it is the largest city of its autonomous community and the tenth largest in Spain...
), Ave. de La Constitución (Seville
Seville
Seville is the artistic, historic, cultural, and financial capital of southern Spain. It is the capital of the autonomous community of Andalusia and of the province of Seville. It is situated on the plain of the River Guadalquivir, with an average elevation of above sea level...
), Praza de Lugo (Corunna
A Coruña
A Coruña or La Coruña is a city and municipality of Galicia, Spain. It is the second-largest city in the autonomous community and seventeenth overall in the country...
), Málaga Plaza (Málaga
Málaga
Málaga is a city and a municipality in the Autonomous Community of Andalusia, Spain. With a population of 568,507 in 2010, it is the second most populous city of Andalusia and the sixth largest in Spain. This is the southernmost large city in Europe...
), Plaza Imperial (Zaragoza
Zaragoza
Zaragoza , also called Saragossa in English, is the capital city of the Zaragoza Province and of the autonomous community of Aragon, Spain...
), La Gavia (Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
), and Paseo de la Castellana (Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
). The headquarters is located in Pozuelo de Alarcón
Pozuelo de Alarcón
Pozuelo de Alarcón is a suburb of over 85,000 inhabitants near the city of Madrid, capital of Spain. It is surrounded by large Mediterranean pine-tree forests: la Casa de Campo, el Monte del Pardo and el Monte del Pilar...
, Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
.
Switzerland
As of 2009, there are four Fnac stores in SwitzerlandSwitzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, two in Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
, the third in Lausanne
Lausanne
Lausanne is a city in Romandy, the French-speaking part of Switzerland, and is the capital of the canton of Vaud. The seat of the district of Lausanne, the city is situated on the shores of Lake Geneva . It faces the French town of Évian-les-Bains, with the Jura mountains to its north-west...
and the fourth in Fribourg
Fribourg
Fribourg is the capital of the Swiss canton of Fribourg and the district of Sarine. It is located on both sides of the river Saane/Sarine, on the Swiss plateau, and is an important economic, administrative and educational center on the cultural border between German and French Switzerland...
Portugal
There are 17 FNAC stores in PortugalPortugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
(in order of opening): Colombo (Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
), NorteShopping (Oporto), Chiado (Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
), CascaiShopping (Cascais
Cascais
Cascais is a coastal town in Cascais Municipality in Portugal, 30 kilometres west of Lisbon, with about 35,000 residents. It is a cosmopolitan suburb of the Portuguese capital and one of the richest municipalities in Portugal. The former fishing village gained fame as a resort for Portugal's royal...
), Santa Catarina (Porto
Porto
Porto , also known as Oporto in English, is the second largest city in Portugal and one of the major urban areas in the Iberian Peninsula. Its administrative limits include a population of 237,559 inhabitants distributed within 15 civil parishes...
), Almada (Almada
Almada
Almada is a municipality in Portugal, covering an area of 70.2 km² located on the southern margin of the Tagus River. Its municipal population in 2008 was 164,844 inhabitants; the urbanized center had a population of 102,357.The seat is the city of Almada....
), GaiaShopping (Gaia
Vila Nova de Gaia
Vila Nova de Gaia, or simply Gaia is a city in Vila Nova de Gaia Municipality, Portugal. It is located in the Porto District, south of the city of Porto on the other side of the Douro River. The city proper has a population of 178,255 and the municipality contains 24 parishes with a total...
), AlgarveShopping (Albufeira
Albufeira
Albufeira is a Portuguese municipality in the Faro District, Algarve region. Its name came from the Arabic: البحيرة . The city has a population of 13,646. The municipality has a population of 35,281 inhabitants and a total area of 140.6 km²...
), Forum Coimbra (Coimbra
Coimbra
Coimbra is a city in the municipality of Coimbra in Portugal. Although it served as the nation's capital during the High Middle Ages, it is better-known for its university, the University of Coimbra, which is one of the oldest in Europe and the oldest academic institution in the...
), MadeiraShopping (Madeira
Madeira
Madeira is a Portuguese archipelago that lies between and , just under 400 km north of Tenerife, Canary Islands, in the north Atlantic Ocean and an outermost region of the European Union...
), Braga Parque (Braga
Braga
Braga , a city in the Braga Municipality in northwestern Portugal, is the capital of the Braga District, the oldest archdiocese and the third major city of the country. Braga is the oldest Portuguese city and one of the oldest Christian cities in the World...
), Alegro (Alfragide
Alfragide
Alfragide is a parish in the municipality of Amadora, with 1.35 square kilometers of area and 8 739 inhabitants . Density: 6 478.1 km ².Its patron Our Lady of Fatima....
), Palacio do Gelo (Viseu
Viseu
Viseu is both a city and a municipality in the Dão-Lafões Subregion of Centro Region, Portugal. The municipality, with an area of 507.1 km², has a population of 99,593 , and the city proper has 47,250...
), MarShopping-IKEA (Matosinhos
Matosinhos
Matosinhos Municipality is located in Porto District, Portugal. The main city is Matosinhos. It is bordered to the south by the city of Porto and lies within the Greater Porto subregion. The municipality has a population of 168,451 in 10 parishes. Many people have recently moved from the...
), Vasco da Gama (Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
), GuimarãeShopping (Guimarães
Guimarães
Guimarães Municipality is located in northwestern Portugal in the province of Minho and in the Braga District. It contains the city of Guimarães.The present Mayor is António Magalhães Silva, elected by the Socialist Party.-Parishes:-Economy:...
) and LeiriaShopping (Leiria
Leiria
Leiria is a city in Leiria Municipality in the Centro Region, Portugal. It is the capital of Leiria District. The city proper has 50,200 inhabitants and the entire municipality has nearly 120,000...
). Also a website (fnac.pt), which was the most popular commercial website in Portugal in 2007.
Loyalty programme
Fnac operates a loyalty programme offering points that are awarded each time the card is presented at the till-point, for each euro spent. For every 4,000 points earned, a gift card worth €10 is issued to the card holder. As of 2008, Fnac boasts 1.8 million members to the programme with the loyalty card also serving as a credit cardCredit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
. As of 2008, there are two versions of the card, a one year membership card or alternatively a three year membership card. The membership card offers a 5% discount on hardware, books and various monthly offers.
Ownership
As of 2008, PPR or Pinault-Printemps-Redoute is still the majority shareholder in Fnac, which has since seen further expansion internationally with stores in BrazilBrazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
(where it is commonly referred to as Fenaque), Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
(where it is now known under the name Fayaque).
Product range
Fnac stores stock a range of products from AudioMusic
Music is an art form whose medium is sound and silence. Its common elements are pitch , rhythm , dynamics, and the sonic qualities of timbre and texture...
, Books, CDs
Compact Disc
The Compact Disc is an optical disc used to store digital data. It was originally developed to store and playback sound recordings exclusively, but later expanded to encompass data storage , write-once audio and data storage , rewritable media , Video Compact Discs , Super Video Compact Discs ,...
, Computer
Computer
A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
software and hardware
Hardware
Hardware is a general term for equipment such as keys, locks, hinges, latches, handles, wire, chains, plumbing supplies, tools, utensils, cutlery and machine parts. Household hardware is typically sold in hardware stores....
, DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
s, Televisions and Video games. Some stores also operate services of photography and ticket sales. The company also offers a wide selection of higher-end consumer products positioning themselves above discount retailers.
Future
In 2008, Fnac opened 10 new stores bringing their total locations, internationally, to 207 with 63 of those outside of FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. The company objective for 2009 is to strengthen their position on each of these countries as well as further international expansion. In November 2007, Denis Olivennes, chief executive officer of Fnac, said, "We are moving from a strategy based on our position as a retailer of cultural and technological products to undertake a new, more global initiative, in which the product is only one aspect among others."
The parent company, PPR highlighted Fnac's good performance in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
in its quarterly business performance, citing acceleration in growth and market share gains supported by strong trading in technical goods.
In November 2007, Eric Angiboust, global development director at Fnac, said in response to a question regarding Fnac entering the UK market, "It’s a matter of timing. For sure we want to be in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
"
On 30 December 2008, the British
British people
The British are citizens of the United Kingdom, of the Isle of Man, any of the Channel Islands, or of any of the British overseas territories, and their descendants...
newspaper, the Independent
The Independent
The Independent is a British national morning newspaper published in London by Independent Print Limited, owned by Alexander Lebedev since 2010. It is nicknamed the Indy, while the Sunday edition, The Independent on Sunday, is the Sindy. Launched in 1986, it is one of the youngest UK national daily...
, speculated that Fnac could be tempted into the UK market by bidding for the 125 stores of the Zavvi Entertainment Group, also an entertainment retailer, which went into administration on 24 December 2008 due to problems with their supplier EUK.
Head office
Fnac's head office is in Le Flavia in Ivry-sur-SeineIvry-sur-Seine
Ivry-sur-Seine is a commune in the Val-de-Marne department in the southeastern suburbs of Paris, France. It is located from the center of Paris....
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
.
Previously it was located in Clichy-la-Garenne
Clichy, Hauts-de-Seine
-Administration:The canton covers a part of the commune; the other is in the northern part of Levallois-Perret-Twinnings: Heidenheim, Germany, since 1959 Sankt Pölten, Austria, since 1968 Santo Tirso, Portugal, since 1991 Rubí, Spain, since 2005 Southwark, United Kingdom, since 2005Clichy has also...
, Hauts-de-Seine
Hauts-de-Seine
Hauts-de-Seine is designated number 92 of the 101 départements in France. It is part of the Île-de-France region, and covers the western inner suburbs of Paris...
. Around 2006 there were rumors stating that Fnac would move to Wissous
Wissous
Wissous is a commune in the Essonne department in Île-de-France in northern France. Paris-Orly Airport is partially located in the commune.Inhabitants of Wissous are known as Wissoussiens.-History:...
. In 2008 the head office moved to Ivry-sur-Seine. The subsidiary Fnac.com moved from Aubervilliers
Aubervilliers
Aubervilliers is a commune in the northeastern suburbs of Paris, France. It is located from the center of Paris.-Name:In medieval times the name Aubervilliers was recorded as Alberti Villare, meaning "estate of Adalbert"...
to Ivry during the same year.
In popular culture
The story of the 2005 Spanish thriller Mar rojo, starring Maribel VerdúMaribel Verdú
Maribel Verdú is a Spanish actress. She is known to English-speaking audiences for playing Luisa in the 2001 film Y tu mamá también and Mercedes in Guillermo del Toro's 2006 film Pan's Labyrinth. In Spain she is known for films such as Belle Époque, Tetro, and Huevos de oro.Verdú was born María...
, begins with an armed robbery at a Fnac store in Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
.
See also
- Dixons (UK) - competitor
- Media MarktMedia MarktMedia Markt is a German chain of stores selling consumer electronics with numerous branches throughout Europe. It is Europe's largest retailer of consumer electronics.-History:...
- competitor - PPRPPR (company)PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
- parent company (holdingHolding companyA holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
)